2Q review: The rally continues, but risks are growing

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Markets climbed in the second quarter, driven mainly by the tech rally and hopes of an imminent end to monetary tightening. However, notable risks to the rally lay ahead, including

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A very hawkish pause

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At yesterday’s meeting, for the first time since March 2022, the Federal Reserve (Fed) chose not to raise policy rates, instead keeping the benchmark rate at 5.00%-5.25%. However, the Fed

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Headline inflation drops below 5%, reducing risk of another hike in June

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The Consumer Price Index (CPI) for April showed that headline inflation continues to moderate, dipping below 5% for the first time since April 2021. Headline CPI is now below the

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Market risks: A golden era no more

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With the fruitful tandem of low central bank policy rates and muted inflation no longer carrying asset prices higher, as they did in the decade following the Global Financial Crisis,

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Housing affordability: Another headwind of the U.S. economy

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U.S. housing affordability worsened considerably in 2022, driven by expensive home prices and soaring mortgage rates. With the Federal Reserve remaining focused on inflation, a quick recovery from here is

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Global inflation: Past the peak but still very troublesome

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Despite signs that inflation has likely peaked in certain areas of the world, the idea that the global monetary tightening cycle might soon come to an end is misplaced. With

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Investing in emerging Asia amid rising global tensions

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Europe reaches tipping point Tensions between the US and China are heating up and the European Union is facing increasing pressure to choose a side in the wake of COVID-19.

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Views on COVID-19 – mounting concerns around credit triggered a cascade of indiscriminate selling in equity markets

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“Investors began 2020 with high hopes for strengthening global growth, but soon expectations for returns were dashed by overextended valuations and pockets of geopolitical risk. They began to re-evaluate risk,

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Short and Sharp: Have markets developed immunity to the coronavirus?

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Principal Global Investors Chief Strategist, Seema Shah addresses the ongoing impact of coronavirus. “2020 to date has been no stranger to sharp sell offs, followed quickly by big rebounds. In

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Ongoing US-Iran tension could boost energy stocks despite lacklustre global outlook

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Financial markets’ quick recovery following US-Iran tensions may be short lived and punish investor returns, though a renewal of tensions could increase the appeal of energy stocks. Principal Global Investors

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